Corporate Finance in Atlantic Canada

Commentary on corporate finance issues for small- & mid-market private companies in Atlantic Canada

Archive for November 2016

5 Elements of a Successful Business Exit

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Below are five required elements for planning and executing a successful business exit.

  1. A plan based on the owners’ objectives.  Talk to your advisor about mapping out possible scenarios and options that align with your goals.  This doesn’t have to be in writing, but walk through the scenarios with an advisor.
  2. Work with an experienced team of advisors.  Accountants, M&A professionals, lawyers and investment advisors should be part of the exit planning process.
  3. A good understanding of business value.  Work with a valuator or M&A professional to understand how the market will value your business.  Do this in advance so that you can discuss any improvements that can boost the value.
  4. Hire a management team.  All other things being equal, a business with an existing management team is more valuable than one without.  Every buyer wants to know that the business can survive (and thrive) when the existing owner retires, and having an existing management team is the best way to prove this to a buyer.
  5. Time.  Allow for planning time in advance of when you want to retire/sell.  The process can take time, but especially if value improvements and/or tax strategies need to be implemented first.

According to some sources, anywhere from 67-90% of businesses listed for sale fail to get sold.  Developing an exit plan using the elements above can improve those odds.

Written by Dan Jennings

November 28, 2016 at 2:00 pm

NewNet sold

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https://news.samsung.com/global/samsung-acquires-rich-communications-services-business-from-skyview-capitals-newnet-communication-technologies

Bedford, NS’s NewNet Communication Technologies has been sold to technology giant Samsung.  NewNet is a provider of “rich communications services” to mobile data networks.

Originally named NewPace, NewNet was acquired by Skyview Capital in 2014, who have now sold it to Samsung.

Written by Dan Jennings

November 16, 2016 at 8:17 am

Source Security sold

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http://www.newswire.ca/news-releases/allied-universal-purchases-canadas-source-security–investigations-600382701.html

Halifax’s Source Security & Investigations (owned by Ron Lovett) has been sold to Allied Universal.  Allied Universal in turn is the result of a mega-merger earlier this year (Aug/16) of AlliedBarton and Universal Services.   Allied Universal claims to be North America’s largest security force.

Another example of industry consolidation and a vendor selling to a strategic buyer in his industry.

Written by Dan Jennings

November 8, 2016 at 2:00 pm

Posted in Announced Transactions

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